IFC, IDB to Invest $100 Million in MENA Infrastructure

The International Finance Corp (IFC), a member of the World Bank Group, and Islamic Development Bank (IDB) jointly plan to invest up to $100 million on major infrastructure projects across the Middle East and North Africa, IFC said on Monday.

The International Finance Corp (IFC), a member of the World Bank Group, and Islamic Development Bank (IDB) jointly plan to invest up to $100 million on major infrastructure projects across the Middle East and North Africa, IFC said on Monday.

Both the institutions are pooling in $50 million each to the Arab Infrastructure Investment Vehicle, which is part of the Arab Financing Facility for Infrastructure (AFFI), a joint initiative of the World Bank, the Islamic Development Bank and IFC.

The AFFI provides financing and technical assistance to cross-border infrastructure projects and encourages governments and the private sector to work together on such projects.

IFC, which invests in developing the private sector in emerging economies, is looking at sectors such as infrastructure, education, financial services and trade, a senior executive said in January, adding it plans $1 billion MENA investments by end June.

Governments in the Gulf Arab region are also investing billions of dollars to boost local infrastructure as they cater to demands of growing young population.

The IFC has invested close to $2 billion in the region last year and has channeled more than $2.2 billion since the beginning of the Arab Spring last January.

It made a $50 million equity investment in Orascom Construction Industries and agreed to lend $200 million to its subsidiary, Egyptian Fertilizer Company in July last year.